Cryptocurrency: Making Informed Decisions

A few years ago, only a limited number of people talked about cryptocurrency. Most people had mixed feelings about the topic with the majority dismissing the whole concept as a scam. With the entry of crypto casinos, there is no stopping for the crypto believers. Should you invest in blockchain technology, here some things you ought to consider:

Cryptocurrency is Highly Volatile

Many people have bought and sold cryptocurrencies, making massive profits, while others are yet to see what the hype is all about. As an investor, please keep in mind that the crypto market is highly volatile compared to traditional investment avenues like the stock exchange.

High volatility has vast implications on investments. An asset’s value can be high one morning and fall drastically by the next. As a result, investors have to contend watching the value of their investments plummet. It is a stressful experience, especially when the capital invested is enormous. Concerning capital, remember to boost your gambling bankroll by claiming Playcroco no deposit bonus codes.

Understanding Why Cryptocurrency Keeps Fluctuating

Since the entry of cryptocurrency into the market, one thing remains clear. Coin value can change drastically and there is little you can do to salvage the situation.  If you are wondering why cryptocurrency fluctuates all the time, here are some of the reasons:

Negative Publicity

Since cryptocurrency’s creation and introduction, there has been a lot of negativity, especially from the media. People have divided opinions, with some still doubting the legitimacy of blockchain investments. Past scams linked to crypto made many people skeptical. The Silk Road shutdown of 2013 is still fresh in the minds of then investors, who are now wary of blockchain.

Difficult to Value

Crypto and blockchain technology have certainly changed the investment market. While bitcoin’s current value is evident, there are many factors at play, including high volatility, making it challenging to place an exact value. People are afraid of investing in an asset that could potentially lose significant value in the future. On the other hand, you can earn interest on your crypto

Gradual Adoption

While blockchain technology has made headlines in the recent past, there is still considerable apprehension from the masses. Crypto firms have made progress through investor education and media campaigns. Yet, the rate of adoption still seems slow and might take some time to match up with traditional currencies.

Difficult & Exciting

Some crypto investors are holding on to massive amounts of coins, making quick exit almost impossible. With the value changing constantly, investors find it hard to sell their currencies, especially when the value is really low. Besides, buyers are now cautious and unwilling to invest all their money into the blockchain space.

Tax Uncertainty

Uncertain tax implications are very investor’s nightmare.  As blockchain is still new and largely unregulated In many parts of the world, there is high uncertainty concerning taxation. Many investors avoid such situations as there is no telling when governments and jurisdictions deal stamp their authority concerning cryptocurrency.

Its Virtual Nature

Many people accept notes and coins primarily because of their physical nature. Placing value on physical currencies is easy since you can count your money. As for bitcoin, every transaction takes place online and many people have difficulty understanding how it works.

What to Avoid if You are a Cryptocurrency Investor

From past observations, there are many pitfalls that investors face in the crypto market. Putting your money in crypto is not a bad idea. Many people have turned into millionaires overnight thanks to technology. If you own bitcoin and would like to take charge of your investment, here are a few things to avoid:-

Investing Blindly

Many people have lost colossal sums of money by following the wrong people. Nothing worth taking to the bank comes easy and making an uninformed investment is a quick way to lose your cash quickly and permanently. If you intend to invest in cryptocurrency, it is advisable to carry out adequate research and find out more before splashing your hard-earned money.

Emotional Trading

When it comes to cash, it is always prudent to leave any emotions out the door. No matter how convincing a marketer may be, remember to use reason before making a financial decision. Making rush choices is a bad idea. Successful investors value their money and take time to analyze an idea before taking action.

Investing in One Type of Coin

There are various types of cryptocurrency coins, including:

  • Bitcoin
  • Bitcoin cash
  • Ethereum
  • Litecoin
  • Zcash
  • Bitcoin Satoshi’s Vision

Currently, ethereum, bitcoin and litecoin offer the most stability. When Bitcoin’s value declined drastically, investors who had bought ethereum and litecoin made massive gains as the currencies gained value. It is better to spread out your risk and take up several types of cryptocurrencies.

Investing All Your Money

Some deals look promising, especially when you have witnessed someone you know make a fortune similarly. While luck may be on your side, there is also a likelihood that you can find yourself in trouble when you put all your money into a single investment. Like the gambler’s adage, always invest what you can afford to lose.

Ignoring Online Security

All cryptocurrency transactions take place online. Online transactions have their share of risks and you need to tread with caution. Hackers have a huge appetite for cryptocurrency and if you believe that encrypted sites guarantee online safety, you could easily lose your investment.

As casinos continue to embrace cryptocurrency, there is a lot of speculation. Many gamblers are curious to find out what the future holds. If you envision yourself creating a crypto portfolio, consider using these guidelines to safeguard your cash.